Elnahal named president, CEO of University Hospital

NEWARK — State Health Commissioner Shereef Elnahal was named Wednesday as the new president and CEO of University Hospital in Newark, capping a monthslong process to find a permanent leader for New Jersey’s only publicly owned hospital.

Elnahal, who was an assistant undersecretary in the Veterans Health Administration during the Obama administration, will be taking the helm of a Level 1 trauma center that’s long been plagued by financial problems and overcrowding and is currently fighting for $10 million in state funding to launch an overhaul of its emergency room.

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He also could face an immediate challenge to the hospital’s market share if the Health Department designates Trinitas Regional Medical Center in Elizabeth a Level II trauma center, diverting some emergency cases away from University. The health commissioner is technically responsible for making that decision, but Elnahal deferred the responsibility to Principal Deputy Commissioner Jackie Cornell since submitting his resume for consideration at University Hospital in January.

“It’s been my great honor to serve in the Murphy administration,” Elnahal told POLITICO, citing his department’s work on improving racial disparities in maternal health care, the opioid crisis and the state’s psychiatric hospitals. “It’s now my privilege to transition to the state’s only public hospital.”

Elnahal’s appointment was announced by University Hospital’s board of directors during a meeting Wednesday in Newark.

University Hospital’s chair, Tanya Freeman, told those in attendance that the hospital received no pressure from the state or any outside source to support Elnahal, or any other candidate. Elnahal’s candidacy was unanimous.

“This process was a very pure process and we received no outside pressure to support one candidate versus another,” Freeman said. “We’re very proud of that.”

Elnahal met with several Essex County leaders in the weeks leading up to his appointment. Essex County Executive Joe DiVincenzo, who has advocated handing over the hospital’s management to a private entity, and state Sen. Ron Rice (D-Essex), who would prefer the hospital remain public, both offered their support for Elnahal when contacted by POLITICO on Wednesday.

Elnahal, one of the Murphy administration's most public-facing officials since becoming health commissioner in early 2018, made himself familiar with University Hospital over the last year, taking an active regulatory role when the facility faced a litany of upheaval and challenges.

Last year, the hospital took a small step to improve its flagging finances by requesting the Health Department’s approval to remove many of the beds from its inpatient pediatric unit. Even though the inpatient beds were underutilized — and in many respects a financial drain — the request prompted a severe backlash from community leaders, organized labor and Newark Mayor Ras Baraka, prompting the hospital to withdraw its application in July.

A week later, the Department of Health alleged the hospital’s administration had moved forward with the bed removal anyway, prompting Gov. Phil Murphy to sign an executive order granting Elnahal the authority to appoint an outside monitor to conduct a review of the facility’s operations and finances.

The monitor, former CHE Trinity Health CEO Judith Persichilli, would later publish a scathing report calling for reforms to University’s governance and administrative structure.

University Hospital President and CEO John Kastanis stepped down shortly before the report’s release. The board of trustees, now led by Murphy-appointed Tanya Freeman, tapped Persichilli to take over on an interim basis.

Elnahal, in his public statements, was highly supportive of the blueprint Persichilli laid out in her report, which included opening an on-site urgent care facility and accelerating the launch a population health pilot program to connect 145 patients who have the highest utilization of emergency room treatment to social services that can provide a continuum of care outside the hospital.

Earlier this year, the hospital launched a new program to connect hundreds of regular visitors to its ER — who often drive up the cost of care — with social services, behavioral health care specialists and other resources.

“I want to see the state’s only public hospital succeed for the patients who need care, for the broader community in Newark and for the frontline clinicians and employees who strive to provide the highest quality care every day,” Elnahal said in December.

It is unclear who will take over for Elnahal at the health department.

Though his new salary has not been disclosed, Elnahal will likely earn substantially more in his new role. As health commissioner, he reportedly earned $175,000 a year. Kastanis made $900,000 as University’s president and CEO.

Murphy said in a statement it is “bittersweet“ to see Elnahal leave the health department.

“Over the past year-and-a-half, Shereef has proven again and again that he was the perfect choice for our administration’s first Commissioner of Health,” Murphy stated. “Whether it was guiding the state through a troubling viral outbreak, working with the First Lady to tackle maternal health disparities, or ensuring that more patients than ever before will have access to medical marijuana, he has made us proud. While I am sad to see him leave the Department of Health, I am immensely happy to see him continue his service to the people of New Jersey and some of our most underserved residents at University Hospital.”